An Overview Of How To Pay Taxes Via Your Utah LLC
When you have a Utah LLC, you make be concerned about how you will file taxes each year. For example, if you have a sole proprietorship, you are likely to use to subtracting your expenses from your gross earnings to determine the net amount you are earning. Based on those figures, you can then pay your taxes, as well as state taxes that you have collected for the products or services that you have offered. However, when you have an LLC, in the state of Utah, you may wonder what you need to do next. Here is an overview of how taxes are applied to LLCs and what type of taxes you will have to pay if you have a limited liability company for your business.
Annual Filing Requirements For LLCs
There are various documents that you may have to prepare in your state to pay for taxes if you have an LLC. For example, the annual report, which is also referred to as renewal, must be submitted 60 days before the report is due. There is a filing fee of $15, and there is also a penalty fee, so keep that in mind. For state taxes, because LLCs are pass-through entities, you are simply responsible for paying taxes like you always have if you had a sole proprietorship or partnership. When you submit your taxes, you will use IRS Form 2553. This will be included in all of your regular tax documents. If there are any other taxes, your accountant will be able to point out what you need to pay based on the type of business you are in.
Can LLCs Help You With Your Taxes?
One of the main benefits of having an LLC, in regard to federal income tax, is that they allow you to have a little more flexibility. By comparison to people that simply have a partnership or a sole proprietorship, it may help you when it comes to paying your taxes. Also, remember to file a Schedule C if you have made more than $400 in the course of the year. Other than that, that is all of the additional forms and taxes related to LLCs that you will have to be focused upon, all of which can be handled by your accountant if you have one.
Are There Any Other Benefits To Having An LLC?
The primary benefit of having an LLC is that it offers you extra protection. From a personal standpoint, if you have personal assets, those that are suing you cannot get access to them. That is why you should also fill out the nonmandatory Operating Agreement. This is useful in court if it goes to that level. It will define the fact that the LLC is separate from you, and that your assets are separate from it, and this will help further define that they will not be able to obtain your personal assets.
How Do You Set Up An LLC In Utah?
Setting this up is actually straightforward. There are certain steps you have to take, some of which must be done long before you file. For example, you must register the name of your LLC and that begins with visiting the Utah business name database which is located in the section called Division of Corporations and Commercial Code on the Utah Department of Commerce website. Once you have filed your Application for Reservation of Business, you are going to have about 120 days to reserve that name. Once done, it will be yours, and you can apply it to your request for an LLC.
Obtaining Your Registered Agent
You will also notice on the form that it’s going to request the name and address of your registered agent. Keep in mind that this business or individual may not necessarily be in the state. As long as they have a physical address that is used in the state of Utah, and it can receive mail, then you would be able to use this registered agent with your LLC. You can find a list of all of the registered agents available by searching online or simply using a company that can help you set everything up.
Why You Should Consider Using A Company To Help You Create Your LLC
One of the main reasons for getting extra help with creating your LLC is that there are many benefits associated with using these services. For example, they may be able to provide you with a registered agent courtesy of their company. Of course, it will cost money, but you won’t have to decide whether or not you have found the right one. They can also help you with filling out all of the forms and submit the forms for you. You will have to pay the fees, but they are going to do this in a professional manner. Once done, over the course of a few weeks, your LLC will be formed in Utah, giving you the ability to feel more confident about not having to part with the personal assets that you own in case of a legal dispute.
If you are ready to start your LLC in Utah, it is important to have this set up to offer you extra protection. If you don’t want to do this on your own, contact a business that can help you. This will allow you to not worry about every step of the process. Even better, they can fill the forms out, submit them, and verify that all of the content that is submitted is correct. This will ensure that your approval will go through, and soon you will have a limited liability company protecting your assets.